Sustainable Outperformance

May 1, 2012

Sustainable indexes in LatAm continue to outperform benchmarks. A rising number of regional companies with strong practices gives index makers more names to choose from.

With uncertainty in global equity markets, and with large
industrial country economies struggling and Asia showing signs
of slowing down, investors continue to find that companies
investing in sustainability deliver superior performance,
especially in Latin America.

As of April, the M&E LatinFinance Sustainability Stars
Index had returned 23% in the 28 months since its creation,
compared to a 7.9% loss in the Bovespa during that period. The
Bovespa’s own indexes highlighting corporate
governance also outperformed during that period, including the
Bovespa Governance Index IGC (12.3% return), Bovespa IGCT
Governance Index (9.4%) and the Bovespa ITAG special tag-along
index , which tracks shares that offer exceptional conditions
for minority shareholders (11.6%).

"A way you can quantify [the importance of corporate
governance] is to look at the relative performance of the Novo
Mercado in...